ACFR - FY2020 5-28-21 FINAL - Flipbook - Page 61
NOTES TO FINANCIAL STATEMENTS
CITY OF EUSTIS, FLORIDA
(Continued)
Note 1 - Description of Funds and Summary of Significant Accounting Policies (Continued)
Assets, Liabilities and Fund Equity (Continued)
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Restricted Assets
Specific provisions of debt resolutions and City policies restrict the uses of certain
assets of the enterprise fund. These assets restricted for paying general obligations of
the fund. Assets so designated are identified as restricted assets on the Statement of
Net Position.
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Capital Assets
Capital assets include property, plant, equipment, and infrastructure assets (e.g.,
roads, bridges, sidewalks, and similar items), and are reported in the applicable
governmental or business-type activities columns in the government-wide financial
statements. Property, plant, and equipment with initial, individual costs that equal or
exceed $5,000 and estimated useful lives of over one year are recorded as capital
assets. Roads, bridges, and sidewalks are capitalized when their initial costs equal
or exceed $25,000 and possess estimated useful lives of more than one year. Capital
assets are recorded at historical cost or estimated historical cost if purchased or
constructed. Donated capital assets are recorded at the acquisition value at the date
of donation.
Major outlays for capital assets and improvements are capitalized as projects are
constructed. Interest incurred during the construction phase of capital assets of major
business-type activities is included as part of the capitalized value of the assets
constructed. Capital asset purchases are recorded as capital outlay expenditures in
the fund level governmental funds in the year of acquisition.
Property, plant, and equipment are depreciated using the straight-line method over
the following estimated useful lives:
Useful Lives
Buildings
10-40 Years
Land Improvements
15-40 Years
Equipment
3-40 Years
Infrastructure
15-40 Years
Expenditures for repairs and maintenance are expensed when incurred. Additions,
major renewals and replacements that increase the useful lives of the assets are
capitalized.
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Amortization of Bond Discounts and Premiums
In the Water and Sewer Utility System Fund, bond discounts and premiums are
amortized over the life of the bonds using the straight line method. In the governmental
funds, these costs are recorded as other sources or uses when bonds are issued.
Issuance costs are expensed at the time of debt issuance.
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